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In recent years, marketing budgets for retail businesses have been on the rise, representing around three to eight per cent of sales. The bad news is that the value of a large portion of that marketing spend is unknown, since retailers haven't measured their return on investment by showing how marketing campaigns resonate with their most important customers to drive desired behavior. The danger in the retail space is that marketing campaigns are implemented with no clear link between business objectives and marketing tactics. It is a big mistake to try to hit all customers with one campaign, rather than differentiating activities according to customer potential.
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